Common Mistakes to Avoid with Your Customer Loyalty Program

Customer loyalty programs work.

As national digital rewards marketing specialists, we know this. We have seen hundreds of businesses run successful loyalty programs that have helped retain customers and grow their businesses. Using tried and true methods and “best practices” of marketing, we’ve been able to aid our clients in creating digital loyalty programs that not only create outstanding ROI, but increase every measure of business including foot traffic, customer retention, social media engagement and revenue generation. There have been those clients who have gone rogue and slightly askew with their customer rewards programs and experienced the pitfalls of doing so. Though our digital rewards specialists are always here to consult with you in regards to those strategies that we know work best, avoiding these common mistakes from the start will ensure a better overall experience for you and a better response from your customers.

  1. Asking for too much information. If it takes too much time or feels like an invasion of privacy, no offer will be worth it to some portion of would-be members. Keep the qualifiers to a minimum to see more customer participation in your customer loyalty program. Encourage more divulging of information later through special offers and incentives. Remember, less is more.
  2. Not creating a sense of urgency. Open-ended offers produce little results. One, two or even three day offers produce the best results as people have your message fresh in their minds. Don’t give them time to forget about you.
  3. Asking them to do the math. 15% off? And that would be how much? We’ve seen a number of great offers go nowhere simply because a business offered a percentage off of a purchase instead of a flat dollar amount. $2.00 of your $10.00 purchase always works better than 20% off. Extending an offer of a free item with purchase is an almost irresistible promotion.
  4. Bombarding your customers with messages. Those customers who have given you access to their most personal information deserve for you to respect that. Don’t overload their devices with messages of sales and offers that aren’t true incentives that will motivate them. Think like a consumer and consider how many times you’d like to hear from a business within a day, a week or even a month.

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